Inflation rises to 8% in December

The National Bureau of Statistics (NBS) has said that the Consumer Price Index (CPI), a basket used to measure, inflation increased year on year to eight per cent in December 2014, from 7.9 percent recorded in November.

According to the NBS, the December 2014 figure implied that inflation was held in the single digit range for 24 consecutive months.

A statement from the statistics body said specifically that in December, the faster pace of price increases recorded by the headline index was as a result of advances in a broad array of divisions that yield the headline index.

It said food prices edged slightly higher in December as a result of the festive period. Over that span, the food sub-index rose by 9.2 per cent (year on year) up from 9.1 per cent recorded in November.

It explained: “This was the first uptick in rates of food prices observed in four months. While higher increases were recorded in the meat, fish, and dairy groups, the food sub-index was weighed upon by slower rises in the bread and cereals, oil and fats, and fruits groups.

“The pace of advances recorded by the ‘All Items less Farm Produce’ or Core sub-index slowed for the first time since August 2014. The Core sub-index eased in December, increasing by 6.2 per cent, after increasing by 6.3 per cent in the previous four months.

“While prices increased in most divisions that contribute to the Core sub-index, slower increases were recorded in the communication and, recreation and culture groups.”

The headline index is made up of the core index and farm produce items.

“As processed foods are included in both the core and food sub-indices, this implies that these sub-indices are not mutually-exclusive.

“The headline index rose by 0.82 percent (month-on-month) in December, higher from 0.59  per cent recorded in November. This represented the highest month-on-month increase since March 2014.

“Year on year, the Urban index increased at the same rate in December as in November; by 7.9 per cent. Rural prices as observed by the Rural index increased at a faster pace in December after increasing at a slower pace for the previous three months.”